**The Optimal Risk-Reward Ratio: Quality Over Greed**
The "best" risk-reward ratio isn't universal—it's the sweet spot where your strategy, win rate, and psychology align. While 1:2 is the professional standard, elite traders often use 1:3 or higher for trend-following systems.
**Key Insights:**
- **1:1** (Break-even trap): Requires 60%+ win rates just to survive
- **1:2** (Classic edge): Profitable at 40-50% win rates
- **1:3+** (Trend gold): Rewards patience but lowers trade frequency
**The Real Secret?**
Your ratio must match:
✅ Market volatility (scalping vs swing trading)
✅ Strategy accuracy (high-probability setups)
✅ Emotional tolerance (holding for bigger targets)
Backtest shows: A 1:2.5 ratio with 35% wins outperforms 1:1 with 60% wins. It's not about being right—it's about being *rewarded* when you are.
